-Public relations

-Sales promotions

[SLIDE 1]

Public relations is the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance.

Publicity is the effort to capture media attention, often initiated through press releases, that furthers a corporation's public relations plans.

In the next slides, we will look at the key duties involved in public relations and the tools used.

[SLIDE 2]

Public relations departments many perform any or all of the following functions:

-Press relations: placing positive, newsworthy information in the news media or in the hands of influential bloggers to attract attention.

-Product publicity: publicizing specific product or services through a variety of traditional and online channels.

-Corporate communications: creating internal and external messages to promote a positive image of the firm or institution.

-Public affairs: building and maintaining local, national, or global community relations.

-Lobbying: influencing legislators and government officials to promote or defeat legislation and regulation.

-Employee and investor relations: maintaining positive relationships with employees, shareholders, and others in the financial community.

-Crisis management: responding to unfavorable publicity or a negative event placement, often at a much lower cost than in mass media.

[SLIDE 3]

To further the goals and duties of public relations, there are a number of key tools that can be used:

-New product publicity: critical in gaining exposure for new products, including press releases, paid advertising, and social media coverage by influencers.

-Product placement: getting the product, service or name to appear in movies, television shows, other media channels, and special events.

-Consumer education: educating consumers, especially early in the product life cycle or for complex financial services (retirement investment) is important for driving interest.

-Sponsorship: spending money to support an issue, cause, or event that is consistent with corporate objectives and the target market’s interests.

-Experiential marketing: event marketing that promotes direct interaction with companies and brands.

-Company websites: using the sites as a source for public information, communicate business decisions, legal and compliance constraints, and performing other marketing functions.

[SLIDE 4]

Regardless of the strength of any brand, there will always be bad publicity. One of public relation’s key duties is to address bad publicity.

E-Coli in food, malfunctioning parts in cars, flammable toys and other problems with products and brands happen with regularity.  Crisis management is the coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event.

The growth of social media has meant that consumer opinion can very quickly impact a brand, whether the negative content is a real complaint or posted by a bad actor. Marketing departments work directly to watch social media and address negative comments. At the same time, companies have arisen to provide the service of online reputation management.

[SLIDE 5]

Sales promotions are marketing activities other than advertising, personal selling, and public relations, in which short-term incentives motivate consumers or distribution channels to immediately purchase a good or service by adding value or lowering the price.

It is important to note that sales promotions are not aimed solely at the final consumer. As mentioned in earlier lessons, some organizations in the distribution channels purchase the products from manufacturers and then re-sell the product to further down the channel. Different promotions work for the channels and for consumers.

As with all other aspects of marketing, technology is continuing to change sales promotions.

[SLIDE 6]

Many tools are the same for selling to trade as to consumers, but some are unique:

-Trade allowances: a price reduction offered to intermediaries such as wholesalers and retailers.

-Push money: money offered to intermediaries to “push” products, to encourage other members of the channel to sell the product.

-Training: helps intermediaries to better understand and explain complex products to consumers or other channel members.

-Free merchandise: in lieu of a discount, the manufacturer can offer free merchandise, often tied to the volume of product purchased.

-Store demonstrations: arrangements between manufacturers or channel members where demonstrations or samples are provided in a retail store to attract consumers.

-Business meetings, conventions, and trade shows: a chance for manufacturers and other vendors to display their products to other members of the supply chain and drive interest and business. Also good for finding competitive information.

[SLIDE 7]

Popular tools for consumer sales are one set of marketing tools that have easily moved from the physical world to online marketing. All of the following work in both places:

-Coupons and rebates: a certificate that entitles consumers to an immediate price reduction at purchase.

-Premiums: an extra item offered to the consumer, usually in exchange for some proof of purchase.

-Loyalty marketing programs: designed to build long-term, mutually beneficial relationships between a company and its key customer.

-Contests and sweepstakes: Contests require the use of knowledge or skill while sweepstakes are based on chance. Both drive interest in product purchase, but sweepstakes typically attract ten times the interest as contests.

-Sampling: allow a consumer the opportunity to try a product or service for free.

-Point-of-purchase promotion: a promotional display set up at the retailer’s location, usually at the place of payment, to build traffic, advertise the product or induce impulse buying.

[SLIDE 8]

As with much of life in advanced markets, technology is changing sales promotions. As mentioned, the internet is changing how sales promotions are used. The same techniques available in the physical world are available on the Internet, but costs are lower and there is a better ability to target specific markets. While traditional rates of coupon redemption are steady, the rates for internet coupons continue to increase.

In addition, the growth of the smart phone market is allowing sales promotions tied to the location of the customer, providing much more immediate promotions to drive purchases.